Essay on Merloni Case

The customer service representative’s first priority is always the customer. Whatever the customer wants, ideally, the customer gets. However, when the customer service representative conducts the search with respect to locating the desired product and shipping the product at the desired shipping address within the desired delivery time sometimes becomes a burden. There are often times where the closest warehouse does not have the requested product in stock and other warehouse locations need to be conducted. In that event, the customer service

Freight cost will reduce by Truck load and by using maximize the cube and also less than truck load shipment will reduce.

When a customer orders material one of the first questions they should be asked is “when do you need it”. Once that’s understood then we can strive to use customer service follow ups to ensure the date is hit (obviously, there needs to be negotiation on the date up front if the customer is unrealistic). Everyone needs to be held accountable to this expectation and it’s not an option to enter the date incorrectly.

Two-If Westminster were to use three weekly trailer deliveries from one warehouse instead of one weekly trailer delivery from three separate warehouses, transportation cost would definitely increase, but if these three deliveries could include mixed products from all three locations in one trailer, it will bring the increased cost more into balance. Economies of scale can be achieved by having only one trailer moving daily which reduces costs (Bowersox, Closs, & Cooper, 2010).

Make sure to arrange the packing materials and transportation after considering the type of items

Centralization with one warehouse: Centralize the North American warehousing with one warehouse in Waltham by closing down the regional warehouses. In this way, the inventory requirements could be pooled to meet the demand.

ft. facility. There is no need for that additional facility since it increases direct and overhead costs. It should be eliminated. The DC is cluttered with merchandise everywhere, under conveyors and scattered across aisles. Tony considered three strategies: improving the physical structure and process flow in the distribution center, the modernization of distribution systems and business processes, and to reallocate human resources. He had to obtain goods from the companies international suppliers and quickly distribute them to their stores within Canada to gain competitive edge.

In addition, I would design a strategic transportation plan that coordinates inbound and outbound shipments to reduce transportation costs and improve service levels. The warehouse will be designed

Several days of inventory will need to be stored within the facility or within close proximity to the retail

The distribution centre in our simulation was located at 949 Laidlaw Avenue, roughly 20 minutes away from the Spicy Cube factory. Both locations are in a relatively built up area, meaning there is adequate infrastructure. This is beneficial as multiple routes between the two minimizes delays that may be encountered due to events such as traffic accidents, or road works. Events such as previously mentioned can occur without warning, so by choosing the location of warehouses in a strategic manner, the risk of failures within the supply chain can be minimized.

Understanding not only how often customers are ordering, where they are located, size of the shipments, the company should require input from the sales team to understand any potential growth in the customer base. Breaking up the customer location into zones will allow the data to be run through a transportation modeling simulation that will provide a cost analysis based on the location of the warehouse and the location of the customers. Using shipment detail, that shows number of shipments, destination details, transit time requirements, number of pallets or parcels, weights, and freight class, will allow the simulation to provide a clear cost and service for the transportation requirements on outbound shipments. This simulation can be run from each location that is under consideration for the warehouse to be located. The simulations will provide a good understanding of inbound and outbound costs, the ability to manage transit times to meet expectations of the customer, both internal and external, and finally point to the optimum location for the warehouse to be located.

Following considerable investment in new warehouse and carrier management systems the number and quality of delivery options had increased. Now delivery options include: same day, next day or standard delivery options that normally takes around 2-3 days. Also customers can set delivery date by themselves and if wanted can be notified via email or text alerts of delivery status. In addition 85% if orders are tractable

2. Discrepancy in Inventory – Rick reviewed at the manufacturing and warehouse operations. He found that floor workers did not record the defective components in the system correctly. He organized training classes for all workers and also increased the physical inventory count frequency from once in every 15 days to weekly. This will help to reduce the inventory discrepancy and increase order accuracy.

This shipment delay makes it difficult to meet customer demands and causes high cost due to backorders.

The dealers did not maintain any warehouse and hence, expected all the storing from the manufacturers. The manufacturers had to fulfill the orders by delivering the finished goods that was in the inventory and manufacture on expedited basis.